How do PCGS & NGC “Guarantee” their grading?

I’ve seen several times when reading about PCGS & NGC that unlike some of the sketchy TPG they “guarantee their grades” but what does that even mean?

Will they actually reimburse a customer if the grade is false?

Like for example if I bought a coin that PCGS graded XF40 and it turned out the coin is a really high quality fake would PCGS pay me the cost I spent on the coin since they slabbed a fake coin?

If anyone has any information on PCGS & NGC guarantees please pitch in here.

Thanks!

 

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If the coin is counterfeit, they will both pay you the fair market value of the coin. Not what you paid, but FMV. I believe they retain the option of replacing the coin.

If the coin is overgraded, they will pay you the difference between the original grade and the new grade and return the coin to you or they will pay you the FMV of the coin at the old grade. I believe they usually give you a choice of which one you want. However, once they just sent me the coin back with a check for what they thought was the value difference without asking me.

 

Oh ok thanks for explaining that .


So basically it sounds like you’re saying if I buy a coin in a legitimate NGC/PCGS holder I don’t have to worry about it being fake or over graded because both companies will remedy the problem if it does happen?

Yesterday I bought an NGC F12 1799 Draped Bust Dollar and I do love it but I keep thinking to myself “What if it’s fake?”

 

If it is fake, send it back and they will review it and they will have no problem buying the coin from you. The TPG aggressively buy back fakes from the marketplace.

 

I don’t really think it’s fake I’m just one of those people who always considers the worst that could possibly go wrong. :/

 

@Gam3rBlake
Maybe you should find a different hobby.

 

i am not clear what is meant, concerning reimbursement if the coin is "overgraded", and being paid the difference between the overgrade and the new grade and return the coin and/or the fmv of the old coin. this is for counterfeits/fakes, no?

this does not apply to non-counterfeit/fake graded coins, correct? the way the answer was worded prompts the question.
the not worrying about overgrading question.....i am not sure that is answered.

if the op is referring to an "overgrade" of a non-counterfeit/fake coin, and is referring to any graded coin in general, i think there is a lot more qualification of the answer needed, that would be helpful, if that is what the op is referring to.

 

Their guarantee covers two things, counterfeits and overgrades (including doctoring).

Counterfeit: They buy the coin back at the FMV.

Overgrade: Example, coin is originally slabbed MS66 ($1000 FMV), but upon regrade is MS65 ($400 FMV). They will either return the newly graded MS65 coin with a $600 check or they will keep the coin and send a check for $1000.

 

Thats my choice to make not yours.

I can participate in any hobby I want.

 

Thanks for explaining it. I appreciate it!

Im glad to hear that TPGs are standing behind their grading & authenticating.

 

I'm sure ANACS does the same thing, ICG's guarantee (from their website) states, "U.S. and Foreign coins graded and encapsulated by ICG are guaranteed to be genuine, unless they are encapsulated in the ICG Educational Slab. Any Customer may resubmit any coin for review of the grade assigned by ICG if such Customer believes that such coin has been over-graded by ICG. If the coin submitted for review by the Customer receives a lower grade under ICG’s internal review practices than the grade originally assigned, ICG shall, at ICG’s option, either (a) replace the coin, or (b) pay any difference between the current fair market value of such coin at the newly established grade and the current market value of the grade originally assigned to such coin."

It's pretty explicit - makes me feel secure about buying slabbed coins from the big four TPGSs.

 

Well I already got my answer but just to clarify:

I was asking what PCGS & NGC would do if they slabbed a coin as “genuine” but it was really a fake.

Now I know the answer but I didn’t know when I made this post.

 

Idk much about ANACS or ICG. I just know that for some reason whenever I see coins on sale the ANACS & ICG ones are cheaper than PCGS & NGC coins of the exact same grade and type.

Like an ICG MS65 Morgan Dollar will always be cheaper than a PCGS MS65 Morgan Dollar of the exact same date & mint.

Im guessing maybe PCGS & NGC have stricter standards or something like that. Like maybe an ICG MS65 would only earn a PCGS MS64 or 64+.

 

that is the clarification that was missing, for the op.

i did not want anybody under the impression that a coin is graded, the person disagrees, and wants money back. it does not work that way. there is a process, such as the one (of many) that you describe: the tpg regrades, for certain circumstances and determines a warranted overgrade. but, even then, it is not automatic, at all, and the fmv between the grades is a large part of the process.
a tpg encapsulated coin is just an opinion. it is not an absolute guarantee of a grade.

 

yes, i know, and you being provided a clear answer was what i wanted you to receive, and not bei under an impression that any graded coin is automatically going to be reimbursed if a person thinks it is overgraded. there is a process, and that is the point i felt should be made.

fake is one thing. grade guarantee is another thing.

 

Yeah I understand.

Like if I have an MS66 coin that I think is overgraded. I would have to send it in. Then they would re-evaluate the coin. Then only if they agreed that the coin was not an MS66 and stated it was say an MS64 would any reimbursement take place. If it was an MS64 I would be reimbursed the FMV difference between 64 and 66.

 

that is close, but not exactly, but for the point i was suggesting needed to be expanded,, it is fine. the only thing i wanted to achieve was that nobody proceeds under false colors concerning a grade guarantee of a non-counterfeit/non-fake coin.
thanks.

 

Don't forget about mis-labeling errors. A few years ago we had some guy making a series of posts about buying a mis-labeled coin and then essentially trying to extort money from the TPG.

 

@Gam3rBlake
You are correct it's your choice and you can participate in any hobby you want.

 

The grading question is tricky. Remember that grading is an opinion, and opinions differ. Therefore trying to get compensation for grading is the most difficult area from which to collect from a claim.

Less controversial is the question of altered coins. Years ago a woman purchased a better date St. Gaudens $20 gold coin that had puttied. Puttied coins have had surface scratches filled in with a substance like Bondo. The repaired area is covered with gold color. The coin might look good for a while, but eventually it looks like this.



The woman filed a claim with PCGS. At first they rejected the claim, but then she went public. PCGS reversed their decision and paid the claim which came to something like $15,000.

I had a similar experience with a gold coin that had been treated with iodine. Coin doctors use it to make gold coins into "toners." PCGS accepted my claim and offered me the choice of compensation for a lower grade or an out right purchase of the coin. Here is the piece in question.



It is quite possible to coins which have been puttied or treated with iodine can get straight grades, probably at lower levels, once the substances have been removed.